Sick Pay: Protecting Crew, Operations, and Your Vessel

When you think of crew becoming unfit for duty, you might picture dramatic events: a fall, a major illness, or an emergency evacuation. In reality, most cases stem from smaller, cumulative issues: wear and tear from repetitive tasks, minor accidents during routine operations, burnout, and mental health struggles.

These more common reasons impact the individual crew member, yacht operations, and overall crew morale and safety. Sick Pay could be the necessary coverage to minimize that impact.

What is Sick Pay?

Sick Pay is the pay that employers receive when crew aren’t working because of a covered illness, injury, or mental health incapacity. It’s financial security that allows them to recuperate properly without added financial stress. For yacht owners, captains, and management, a Sick Pay plan is both a safeguard and an investment. It protects the vessel’s payroll budget while helping to retain skilled and valued crew.

Some of the most common reasons crew members become unfit for duty include:

• Wear and Tear / Overuse Injuries: Repetitive tasks like climbing, lifting, pushing, or constantly operating certain equipment can lead to chronic issues, such as joint pain, tendonitis, and back strain.
• Small Accidents On Board: Slips, trips, stubbed toes, minor falls, or small-tool mishaps, which may not seem severe but can lead to a bigger problem if not treated.
• Burnout and Fatigue: Long hours, irregular shifts, insufficient rest, little time off, and no privacy all contribute. Fatigue alone can create further risk of accidents and long-term negative health effects.
• Mental Health Concerns: Stress, anxiety, depression, isolation, harassment, bullying. Data shows yacht crew are contacting helplines increasingly for mental health issues. (iims.org.uk)

When Does Sick Pay Kick In?

Here are a few examples in which Sick Pay would become relevant:

• A deckhand develops tendonitis from constantly hauling lines and suffering worsening wrist pain. They can no longer perform deck work safely. With Sick Pay, they can rest for several weeks, receive treatment, and return fully able.
• A stewardess starts showing signs of burnout and anxiety after a charter season with little rest. She struggles with insomnia, cognitive fatigue, and stress that begins to affect her service onboard. Sick Pay would let her take leave, seek help, and return without risking her health, reputation, or performance.
• A crew member slips while cleaning the teak and twists a knee. Though not broken, the injury worsens without rest. Sick Pay allows for proper medical care and time off rather than pushing through and making the injury worse.

Benefits to Yachts of Offering Sick Pay

Including Sick Pay in your Crew insurance benefit package is not just compassionate; it has several operational and strategic advantages for the yacht owner, captains, and managers:

• Protects the Vessel’s Payroll Budget: A Sick Pay plan covers a crew member’s salary if they are out due to a covered illness or injury, so you don’t end up paying both their wages and the cost of their replacement.
• Better Recruiting: Crew are more likely to join yachts that show they care, offering benefits that protect health and income when unfit for duty.
• Better Retention: When crew members believe they are not disposable and can recover properly, they stay longer. High turnover is expensive and disruptive.
• Reduced Risk of Compounding Injury: Allowing time to heal reduces the chances of small injuries becoming larger, which could lead to more expensive claims on insurance.
• Safety and Reputation: Crew members who perceive safety and health as valued have increased morale; reputationally, yachts with good crew welfare attract better charters, and guests notice.

Mental Health

How Sick Pay Works

Sick Pay policies typically include:

• A waiting period (typically 7 days).
• Percentage of wage covered (often 60-100%) during periods of unfitness.
• Duration limits (e.g., up to a defined number of weeks/months, typically up to 104 weeks).
• Defined covered illnesses and injuries. (e.g., illness/injury must be certified by a medical professional).

Crew members become unfit for duty far more often due to cumulative wear and tear, minor work accidents, burnout, and mental health concerns than from large accidents. Yacht owners, captains, and managers who include Sick Pay are investing in healthier crew, smoother operations, safer vessels, and stronger reputations. When crew feel supported, they recover properly, stay engaged, and deliver better performance.

MHG Insurance is committed to providing the best insurance solutions for your crew. To learn more about Sick Pay or request an estimate, simply reach out to us at www.mhginsurance.com. We only need your annual payroll and crew count to provide a quick estimate.

Sources (AP Format)

1. West of England. (2025, June 12). "The Rising Tide of Fatigue Among Seafarers: A Growing Concern." [WestPandi News]. Retrieved from https://www.westpandi.com/news-and-resources/news/june-2025/the-rising-tide-of-fatigue-among-seafarers-a-growi/
2. ISWAN. (2024, August 14). "Mental health struggles amongst yacht crew highlighted in ISWAN YachtCrewHelp 2023 Annual Review." https://www.iswan.org.uk/wp-content/uploads/YachtCrewHelp-2023-Annual-Review.pdf
3. SAFETY4SEA. (2024, December 6). "Mental health at sea: Insights into seafarers' wellbeing." Safety4Sea. Retrieved from https://safety4sea.com/cm-mental-health-at-seafarers-wellbeing/